Namcor rejects Cabinet's retail cull
Save the forecourts
National Petroleum Corporation of Namibia (Namcor) interim MD Mauren Mbuende has rejected a reported 2023 Cabinet decision to exit fuel retail, arguing it overlooks the forecourts' profitability and strategic value.
Speaking on NTV’s The Agenda, she revealed that fewer than five of Namcor's 18 forecourts are underperforming, with the majority trading profitably. Retail operations are essential for fuel access in rural and underserved areas, averting shortages and curbing transport costs—a key inflation driver.
“People in remote regions often travel 200–300 kilometres to the nearest fuel station,” Mbuende said. “Namcor shortens those distances, keeps tanks open, and prevents the fuel crises seen in sanctioned Zimbabwe.”
Her stance echoes Namibian Sun reporting from October 2023, which exposed Cabinet divisions: some ministers urged a shift to upstream oil, while others championed retail's commercial and strategic merits.
Government bailouts and financial turnaround
Mbuende highlighted critical government support in stabilising Namcor. In May 2024, a N$1.2 billion injection helped the company settle debts to suppliers and creditors, saving nearly N$300–400 million in interest and penalties. This eased financial strain and enabled profitable trading despite short-term risks.
“The bailout's timing was crucial,” she said. “It stabilised operations, restored confidence, and proved our value—within six months of my interim MD appointment in August 2025.”
The funds also cleared legacy expenditures, shifted the financial balance positively, and gave Namcor room to demonstrate its worth to stakeholders.
Governance and ethical reforms
Mbuende outlined reforms to rebuild trust after past accounting issues that produced qualified financial statements. Namcor is reconciling transactions to international standards, with auditor-approved adjustments underway.
To boost staff morale post-crises, the company launched wellness and counselling programmes and hired international experts for training in governance, accountability, and ethics.
“We're restoring stakeholder trust and building an ethical culture,” Mbuende said. “Namcor's response will shape Namibia's wider energy sector ethics.”
Namcor's forecourts fulfil a public service mandate, supplying fuel where private operators deem it unviable—such as Eiseb to Otjinene, Epukiro, Sesfontein, and the Okaukuejo road. These sites spare communities journeys over 200 km.
“The network cuts transport costs and reins in inflation,” Mbuende explained. “It also shields Namibia from trade-disrupting shortages.”
Future cooperation and national role
Internationally, Namcor exited a joint venture with Angola’s Sonangol over governance issues but recovered 95% of its investment, preserving ties for potential future deals.
Mbuende affirmed Namcor's alignment with national goals, including contributions to the Welwitschia Sovereign Wealth Fund. “Retail is no mere business—it's an economic stabiliser, shortage safeguard, and national duty,” she concluded, ensuring competition, choice, and resilience nationwide.
Speaking on NTV’s The Agenda, she revealed that fewer than five of Namcor's 18 forecourts are underperforming, with the majority trading profitably. Retail operations are essential for fuel access in rural and underserved areas, averting shortages and curbing transport costs—a key inflation driver.
“People in remote regions often travel 200–300 kilometres to the nearest fuel station,” Mbuende said. “Namcor shortens those distances, keeps tanks open, and prevents the fuel crises seen in sanctioned Zimbabwe.”
Her stance echoes Namibian Sun reporting from October 2023, which exposed Cabinet divisions: some ministers urged a shift to upstream oil, while others championed retail's commercial and strategic merits.
Government bailouts and financial turnaround
Mbuende highlighted critical government support in stabilising Namcor. In May 2024, a N$1.2 billion injection helped the company settle debts to suppliers and creditors, saving nearly N$300–400 million in interest and penalties. This eased financial strain and enabled profitable trading despite short-term risks.
“The bailout's timing was crucial,” she said. “It stabilised operations, restored confidence, and proved our value—within six months of my interim MD appointment in August 2025.”
The funds also cleared legacy expenditures, shifted the financial balance positively, and gave Namcor room to demonstrate its worth to stakeholders.
Governance and ethical reforms
Mbuende outlined reforms to rebuild trust after past accounting issues that produced qualified financial statements. Namcor is reconciling transactions to international standards, with auditor-approved adjustments underway.
To boost staff morale post-crises, the company launched wellness and counselling programmes and hired international experts for training in governance, accountability, and ethics.
“We're restoring stakeholder trust and building an ethical culture,” Mbuende said. “Namcor's response will shape Namibia's wider energy sector ethics.”
Namcor's forecourts fulfil a public service mandate, supplying fuel where private operators deem it unviable—such as Eiseb to Otjinene, Epukiro, Sesfontein, and the Okaukuejo road. These sites spare communities journeys over 200 km.
“The network cuts transport costs and reins in inflation,” Mbuende explained. “It also shields Namibia from trade-disrupting shortages.”
Future cooperation and national role
Internationally, Namcor exited a joint venture with Angola’s Sonangol over governance issues but recovered 95% of its investment, preserving ties for potential future deals.
Mbuende affirmed Namcor's alignment with national goals, including contributions to the Welwitschia Sovereign Wealth Fund. “Retail is no mere business—it's an economic stabiliser, shortage safeguard, and national duty,” she concluded, ensuring competition, choice, and resilience nationwide.
Comments
Namibian Sun
No comments have been left on this article